We are planning for a trip to Orlando somewhere around 2nd week of August, 2 adults and 1 kid (2 yrs). I am sure there are many sajhaities who did similar trip before and I want some suggestions from your experience.

1) I dont know, how much 2 year old kid will enjoy a trip, I am guessing not much but we can not leave her back as well.
2) Should we stay inside the disney area hotel or outside? Inside Disney property Hotels appears to be lot expensive compared to others in the area and i am leaning toward ones outside within 10 miles of Disney.
3) Do i really need to rent a car? I can see most of the hotels have free shuttle bus but how frequent are they if there is more than one in the morning? Can we rely on those shuttles? If not, How about parking space and fees in and around Theme Parks? Rental car and Parking fees, I am guessing some extra fees in the airport as well if you want to rent a car right from the airport.
I am thinking to ditch Rental car but is it a good idea?
4) How many days I might need to cover most of the main attractions? I am thinking about 6 night stay- means I will have 5 days to visit around, would that be enough? 3 days for 4 of the disney Parks, 1 day for Universal Studio and Island of Adventures and 1 day for Sea world. I heard you might want to spend more than 1 day for Univeral studio and island of adventures, any idea?
5) Do i need to carry stroller with me? would airlines let me do that? would there be extra fee? If i need to rent one on Disney, I saw they have one of hard plastic (dont think its comfortable one)for about $15.00 per day.
6) Should I buy Disney tickets online together with air and hotel from travel sites or better to buy on gates once you get there? I am fraid there might be a long line........
7) Which one Travel Site is better to buy tickets? I just checked Travelocity and expedia....... Travelocity looks a little cheaper but just before you book it...... they jack the price, I called the customer service and guy was honest to say..... that happens quite often as they dont update the price quite often and price showing before you book can not always be same when you book.

All your great suggestions would be highly appreciated.

1) I dont know, how much 2 year old kid will enjoy a trip, I am guessing not much but we can not leave her back as well.
Going to your local grocery store will be as much fun as going to Disney or Universal Studios for a 2 year old.  But still, you are right, you won't enjoy yourselves as much without your little 'un.  So bring her along.  You will have photos to tell her later if she says you never took her anywhere fun.


2) Should we stay inside the disney area hotel or outside? Inside Disney property Hotels appears to be lot expensive compared to others in the area and i am leaning toward ones outside within 10 miles of Disney.
Hotels within Disney World are expensive but, in my opinion, worth the extra dollars.  You won't have to worry about anything.  You can get your luggage picked up (and later dropped off) by the hotel at the airport.  You won't have to worry about renting a car (I think Universal has a shuttle from Disney).  Plus in the middle of the day, if your child (or you) wants to take a nap, you can always come back to your room.  Hotel guests also get some exclusive access to the park.  

3) Do i really need to rent a car? I can see most of the hotels have free shuttle bus but how frequent are they if there is more than one in the morning? Can we rely on those shuttles? If not, How about parking space and fees in and around Theme Parks? Rental car and Parking fees, I am guessing some extra fees in the airport as well if you want to rent a car right from the airport.
I am thinking to ditch Rental car but is it a good idea?
You'll have to rent a car if you stay outside the park.  Waiting for shuttle can be a drag, especially with a 2 year old and in hot Orlando summer.

4) How many days I might need to cover most of the main attractions? I am thinking about 6 night stay- means I will have 5 days to visit around, would that be enough? 3 days for 4 of the disney Parks, 1 day for Universal Studio and Island of Adventures and 1 day for Sea world. I heard you might want to spend more than 1 day for Univeral studio and island of adventures, any idea?
I would say 5 days for Disney and 1 day for Universal.  I have not been to other parks.


5) Do i need to carry stroller with me? would airlines let me do that? would there be extra fee? If i need to rent one on Disney, I saw they have one of hard plastic (dont think its comfortable one)for about $15.00 per day.
Do yourself a huge favor and take a stroller.  Make sure it reclines far enough so that your daughter can take her nap(s) comfortably.  Stroller rentals can add up to be expensive.  Airlines will let you take it right up to the gate and hold it in their compartment for you so that it will be available right when you step out of the airplane at the other end.  Unlike baggage, there are no fees for strollers or booster seats.


6) Should I buy Disney tickets online together with air and hotel from travel sites or better to buy on gates once you get there? I am fraid there might be a long line........
Once you have the dates firm, buy the tickets in advance online.  We used Ares Travel to buy park tickets and bought the air tickets directly from the airline's website.  I believe Ares is some sort of official disney agent.  Also visit www.mousesavers.com for the deals.  You can also check with any of the travel agents for air+lodging+park tickets.

7) Which one Travel Site is better to buy tickets? I just checked Travelocity and expedia....... Travelocity looks a little cheaper but just before you book it...... they jack the price, I called the customer service and guy was honest to say..... that happens quite often as they dont update the price quite often and price showing before you book can not always be same when you book. 
I checked Travelocity, Orbitz, Expedia, hotwire for the best price and also tried the airline websites for the best deal.

Hope this helps!  Have fun. 

 Come to think of, do you really want to go to Orlando in August?  It's going to be scorching hot.  Maybe no big deal for you, but it will be torturous for your little pumpkin.  Why not wait for the weather to cool down a bit.  You can google for the best time to go to Disney World so that you will really enjoy yourself, avoiding the hot sun and the crowd.

Thanks Nina for your detailed suggestion. I was thinking same for August, but school, job everything else around has to be considered. On top pf that after few months my little one would be 3 and we have topay for her ticket as well, which will easily add up another 4-5 hundreds.
Especially, Wife would start school this fall and I may not get time off from job until around February.